From July 1, European shoppers ordering even a single one-euro item from Shein or Temu will pay four euros, as a new EU tariff comes into effect.
The temporary tariff adds three euros per item to parcels worth up to 150 euros arriving in the EU from third countries, mainly in Asia. Parcels worth more than 150 euros already face customs charges.
Until the end of June, all parcels worth up to 150 euros from third countries reach Cyprus and the other 26 EU member states without any customs charge, a situation the European Commission found was creating unfair competition for European businesses. The only extra charge consumers currently pay on purchases up to 150 euros from third-country platforms is VAT.
Complaints
There have been many complaints in Europe that business owners made bulk purchases from these and other platforms, splitting them into parcels worth 140-150 euros to avoid paying any tax at all, unlike other businesses that brought the same products into the European market through the normal one-order process and paid tax accordingly.
Others affected too
The temporary three-euro-per-item tariff mainly targets direct shipments of small parcels worth up to 150 euros from China, via the globally popular platforms Shein, Temu and AliExpress, which is owned by the Chinese giant Alibaba. Shein and Temu are companies with Chinese ownership, headquartered in Singapore and Boston, in the United States, respectively. AliExpress is an online retail platform headquartered in China, operating exclusively as an online store.
What about the US and UK
It is possible that the temporary three-euro-per-item tariff will also apply to purchases from companies or platforms in the United Kingdom and the United States, since these are also third countries. On that basis, purchases from Amazon could also be affected by the tariff, though to a lesser extent, since much of what is sold to Cyprus and other EU partners comes from warehouses or producers within the EU.
Although the Commission’s decision concerns “small parcels” from third countries, it does not make clear whether the measure will also apply to American and British retail groups such as eBay, Walmart Marketplace, ASOS and OnBuy.
These groups are distinct from the low-cost platforms based or operating out of Asia.
The Customs Department issued an announcement on the imposition of the temporary three-euro-per-item tariff on online purchases of up to 150 euros from outside the EU. The sale must be made by a seller registered under the IOSS (Import One-Stop Shop) regime; Shein and Temu are both registered with IOSS, through which VAT is also paid.
The measure will remain in effect until 2028, Customs Department spokesperson Giorgos Konstantinou told Phileleftheros. He said the EU’s new Customs Data Hub will be operational by then, at which point the standard tariff rate will apply.
Examples of charges
Phileleftheros set out how the temporary three-euro tariff will be applied to parcels worth up to 150 euros, and what happens with Chinese platforms that hold warehouses in Europe.
A parcel from Shein, Temu or a similar platform containing ten different items — for example trousers, two pairs of shoes, underwear, pyjamas, tops, hair accessories, bracelets, a jacket, a swimsuit and slippers — with an initial bill of 150 euros will cost the consumer 180 euros from July 1, before VAT is added. That works out as an extra tariff of 30 euros, or three euros per item ordered.
Someone buying tools, kitchen items, linens and a pair of shoes from Temu, for example, with an initial bill of 100 euros, will see that rise to 112 euros once the temporary tariff is applied — four items at three euros each.
A consumer who buys 20 tops with an initial charge of 120 euros will pay a tariff of just three euros, taking the final bill to 123 euros, because they ordered only one type of item.
Someone buying 50 glasses from Temu at a price of 80 euros will pay 83 euros once the temporary tariff is added.
A consumer who buys a product on Amazon from a seller based in China or the US will pay a three-euro tariff on top of the price — for example, 103 euros on a 100-euro item. If the same product is bought from an Amazon supplier in Germany or Italy, the temporary tariff will not apply.
EU warehouses and the temporary tariff
Where products from Shein, Temu or similar third-country platforms are shipped in bulk to the EU and stored in warehouses in member states, the temporary tariff will be charged when the goods enter the country where the warehouse is located, and will be paid by the warehouse owner or operator. If they do not pay it, the cost will fall to the end consumer, for example someone in Cyprus or Greece.
According to Konstantinou, Shein and Temu’s policy is to charge all costs at the time of the original order. He also urged consumers who find that orders from Chinese-owned platforms are delivered to them from within Europe to contact the company directly and request a refund of the temporary tariff.